The Volkswagen Group significantly increased its profitability in the first nine months of 2010 and further expanded its strong position in the international automotive markets. The number of vehicles delivered rose by 12.9 percent to 5.4 million (January – September 2009: 4.8 million), a new delivery record for the Group. Volkswagen’s global market share climbed to 11.6 percent (11.5 percent). Sales revenue was up by 19.9 percent to €92.5 billion (€77.2 billion) in the reporting period, while operating profit exceeded the weak prior-year period by €3.3 billion, amounting to €4.8 billion (€1.5 billion). Profit after tax totaled €4.0 billion (€0.7 billion).

Sales revenue up 19.9 percent in the first nine months of 2010 to €92.5 billion (€77.2 billion)

“We continued our extremely successful business growth in the first three quarters and are therefore well-positioned to achieve the goals laid down in our Strategy 2018″, said Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, on Wednesday at the release of the interim report. CFO Hans Dieter Pötsch added: “Increased demand for our Group models and our disciplined cost management led to these strong results, which have strengthened our sound financial base.”

Chinese joint ventures make key contribution to success

The extremely positive business performance of Volkwagen’s Chinese joint ventures is not included in the Group’s operating profit, as these are accounted for using the equity method. The Chinese joint ventures, with an operating profit of €1.3 billion, significantly exceeded the prior year figure (€0.5 billion). In addition, the financial result includes positive effects of €863 million from the measurement of the put/call rights relating to Porsche Zwischenholding GmbH at the reporting date. Profit before tax rose by €4.4 billion to €5.4 billion.

Improvement in net liquidity bolsters Strategy 2018

Europe’s largest automobile manufacturer recorded a further improvement in its financial strength in the period from January to September, increasing net liquidity in the Automotive Division to €19.6 billion (€13.4 billion). This enables the Volkswagen Group to systematically drive forward the implementation of its Strategy 2018. The ecological alignment of the Group’s model range and investment in new technologies and locations also play a major role here. The company maintained its strict investment discipline, with a ratio of investments in property, plant and equipment (capex) to sales revenue of 4.0 percent (5.7 percent).

Brands and business fields

Almost all Volkswagen Group brands sold more vehicles in the first nine months of 2010 than in the prior-year period.

At 2.8 million (2.5 million) vehicles, the Volkswagen Passenger Cars brand lifted unit sales by 11.8 percent. Its operating profit improved to €1.6 billion (€0.3 billion). This growth was driven in particular by demand for the Polo, New Beetle, Tiguan, Touareg, Jetta and Passat models.

The Audi brand sold 968,000 vehicles in the reporting period (852,000), an increase of 13.6 percent. In addition to higher volumes, continuous process improvements and systematic cost optimization helped almost double its operating profit to €2.3 billion (€1.2 billion). Demand for the Audi A4 saloon, Audi A6 saloon, Audi Q5 and Audi Q7 models was particularly encouraging. The figures for the Lamborghini brand, which are included in the key figures for the Audi brand, also showed a positive development.

The Škoda brand lifted unit sales by 4.3 percent in the first three quarters of 2010 to 426,000 (409,000) vehicles. Operating profit rose to €314 million (€162 million). In addition to higher volumes, mix effects and cost reductions had a positive impact. The Octavia, Superb and Yeti models experienced strong demand.

The SEAT brand’s unit sales profited from the recovery of the Spanish passenger car market, climbing by 10.6 percent to 260,000 (235,000) vehicles. As a result, its operating loss narrowed to €-218 million (€-228 million).

Thanks to improved operating conditions in the luxury segment in the first three quarters of the year, the Bentley brand increased unit sales by 29.9 percent. However, the operating result was impacted by changes in the market and product mix as well as upfront expenditures for new products. The brand’s operating loss amounted to €-145 million (€-148 million).

Volkswagen Commercial Vehicles sold 248,000 vehicles in the reporting period (204,000; +21.7 percent) and generated an operating profit of €142 million (€390 million). Adjusted for the proceeds of €0.6 billion received in the previous year from the sale of the Brazilian commercial vehicles business, the operating result was significantly higher than in the same period of 2009.

The Scania brand lifted unit sales by 46.7 percent to 44,000 (30,000) units, improving its operating profit to €938 million (€98 million). The prior-year figure was affected by tough operating conditions in the commercial vehicles business.

With an operating profit of €684 million (€468 million), Volkswagen Financial Services contributed to the Group’s strong results in the first nine months of 2010.

Winterkorn: “Pole position in the automotive industry firmly in our sights”

Total volumes for the global automotive markets in 2010 will be above the weak prior-year level, primarily due to the strong growth in the Chinese market. The Volkswagen Group will continue its new model rollout in the fourth quarter of 2010, strategically expanding its vehicle range. The Board of Management therefore continues to expect that deliveries to customers in the current year will be substantially higher than in the prior-year period.

“The Volkswagen Group continues to have its sights firmly set on capturing pole position in the automotive industry: the foundations for our success are our presence in all key regions of the world, our focus on pioneering products and our drive to be the technology leader in all relevant areas. This will allow us to systematically expand our multibrand Group’s strong position in the international markets”, said Winterkorn.

The successful business growth of the Volkswagen Group in the first nine months of 2010 will not continue as strongly in the fourth quarter. “Nevertheless, we believe that sales revenue and operating profit in the current year will continue to perform positively”, said Pötsch. Volkswagen will also continue to focus on disciplined cost and investment management and the continuous optimization of its processes.

The upcoming DTM round at the Adria International Raceway from 29 to 31 October will see the addition of a special highlight to the supporting programme. On Saturday a charity race for the benefit of the “Wings for Life” foundation featuring cars from the Volkswagen Scirocco R-Cup will be held at which celebrities from the worlds of sport, show business and business will take the wheel.

Pop star Nino de Angelo, football legend Karl-Heinz “Kalle” Riedle, TV chef Mario Kotaska, musician Max Mutzke, actor Claus Theo Gärtner and ARD sport reporter Gerhard Delling are just some of the names from the illustrious field of 15 entrants. In addition, Dr Ulrich Hackenberg, Member of the Volkswagen Management Board for Technical Development, will slip into the racing overalls.

The prominent guest entrants will drive vehicles from the Volkswagen Scirocco R-Cup which has been delivering spectacular races as part of the DTM weekends throughout the season. The drivers this year have included former Formula 1 racers like Martin Brundle, Johnny Herbert or Mark Blundell. World Rally Champion and “Dakar” winner Carlos Sainz was active in the Scirocco R-Cup too. The natural gas-powered racing cars deliver 225 hp and emit 80 per cent less CO2. All cars are equipped with a push-to-pass system which provides a short-term power boost of 50 hp enabling many overtaking manoeuvres.

The non-profit research foundation “Wings for Life” aims to promote and accelerate scientific progress in curing paraplegia resulting from spinal injuries. In addition to other sportsmen, the DTM drivers Martin Tomczyk (Audi) and David Coulthard (Mercedes-Benz) are ambassadors for “Wings of Life”. But no matter who will be the first to cross the finish line in the end, the good cause will be the winner as all of the proceeds will go to the charity.

Porsche AG, Stuttgart, continues to consistently target fuel economy with each model change. Depending on the model, the savings achieved by all currently available model series in comparison with the corresponding predecessors lie in the double-digit percentage range whilst simultaneously offering significantly increased performance. With consumption reductions of 20 to 23 percent in the New European Driving Cycle (NEDC), the savings achieved by the new generation of Cayenne models are the highest. However, the new generations of the 911 and Boxster/Cayman sports car model series launched in 2008 also revealed savings of up to 16 and 15 percent respectively.

In the sports cars with naturally aspirated engines, the vast majority of these reductions, 0.5 and 0.6 l/100 km respectively, is attributable to the switch to direct fuel injection and the introduction of the seven-speed Porsche Doppelkupplungsgetriebe (PDK) instead of the five-speed automatic torque converter transmission Tiptronic S. These measures also enabled a 911 vehicle to dip beneath the mark of ten litres of fuel per 100 kilometres for the first time: the 345 hp 911 Carrera with PDK consumes just 9.8 l/100 km. In comparison with the predecessor model, this equates to 13 percent less fuel consumption and 15 percent lower CO2 emissions. The Boxster and Cayman models are also benefiting from the new drivetrain technology. Direct fuel injection and PDK allow fuel consumption in both the 310 hp Boxster S and the 320 hp Cayman S to be reduced by 15 percent to 9.4 l/100 km.

More power with lower consumption, increased efficiency and reduced CO2 emissions – this basic principle of the “Porsche Intelligent Performance” programme also particularly applies to the new Cayenne model series. The two six-cylinder Cayenne and Cayenne Diesel models therefore consume 20 percent less fuel than their predecessors, whilst fuel consumption in the two V8 Cayenne Turbo and Cayenne S models has actually been reduced by 23 percent. The new highlight within the model series – the Cayenne S Hybrid – offers the greatest fuel economy: it consumes just 8.2 l/100 km. If the Cayenne S Hybrid, with its total power output of 380 hp, is compared against the 385 hp Cayenne S from the previous generation, the reduction is actually 40 percent with better performance in certain disciplines. Three out of five Cayenne models remain beneath the mark of ten litres of fuel per 100 kilometres in the NEDC, with two offering CO2 emissions of less than 200 g/km.

Amongst other measures, this significant reduction in consumption across the entire Cayenne range has been attained via the introduction of the new eight-speed automatic transmission Tiptronic S with automatic stop/start function and a wide gear ratio range, due to thermal management for the engine and transmission cooling circuit, by vehicle electrical system recuperation and variable deceleration fuel cutoff and, by no means least, due to weight reduction and intelligent lightweight construction. A weight-optimised material mix and modifications to the overall vehicle concept such as the new active and light four-wheel drive system have enabled the weight of the Cayenne Turbo, for instance, to be reduced by 185 kilograms despite improved product substance and increased safety. This not only impacts extremely positively on consumption and CO2 emissions but also on performance, agility and handling.

With five first places in the Internet Auto Award, Audi went one better on its four top positions in 2009. In this, the biggest Internet users poll in the automotive industry, the A1, A3, A5 Sportback, A6 and R8 Spyder models all came top of their classes and were awarded the “Carolina” prize.

A1, A3, A5 Sportback, A6 and R8 Spyder win their categories

Over 233,000 users in Europe vote in AutoScout24 poll

The Internet portal AutoScout24 conducted this poll to find Europe’s most popular cars for the ninth time. Over 233,000 users from Austria, Belgium, France, Germany, Italy the Netherlands and Spain took part. Voters could choose from a total of 343 models in nine vehicle categories.

The new Audi A1 prevailed in the subcompact class at the first attempt. Just like last year, the Audi A3 finished top of the compact class, while the Audi A5 Sportback was the winner in the midsize class. The Audi A6 repeated last year’s first place in the upper midsize class, and the Audi R8 Spyder triumphed in the convertible class. The prizes have been awarded today in the Deutsche Museum Verkehrszentrum in Munich.

STaSIS has created the world’s most powerful Audi R8, with race-bred technology that delivers a heart-stopping 710 hp. Debuting at the 2010 Specialty Equipment Market Association (SEMA) show on November 2 through 5 in Las Vegas, Nevada, the STaSIS Signature Series Challenge Extreme Edition R8 is equipped with a roots-type supercharger that boosts performance by 185-hp and 132 lb-ft torque over the factory model. A race-tuned suspension, 390-mm, 2-piece brake rotors, lightweight forged 20” wheels and a throaty exhaust complete the package. STaSIS builds the only R8 supercharger kits in the world with a 4-year/50,000-mile warranty.

The STaSIS R8 will be located in Audi booth #11245 at SEMA. This is the only STaSIS-modified vehicle in the Audi booth. In addition, STaSIS will also be exhibiting STaSIS versions of Audi’s 2.0-L Q5, 3.0-L S5 cabriolet, and 3.0-L S4 in the STaSIS booth (#11151).

STaSIS racing heritage is engineered into every R8 part so that all systems perform together harmoniously, providing driving enthusiasts racecar-inspired performance without compromising everyday driving comfort. This balance is built into every car we design, from the R8 V10 Spyder, to the STaSIS version of Audi’s popular A4, to the STaSIS TT, S5, S4, A6, A5, Q5 and A3 models.

STaSIS Supercharger and Engine Modifications

The supercharger assembly bolts on to the 5.2-L V10 with no machining or welding necessary and is constructed primarily of CNC-machined aluminum. Generating up to 7.5 psi of boost pressure, the engine produces an astounding 710 hp and 523 lb-ft of torque. The STaSIS supercharger is designed to maximize power and durability by turning at low speeds to generate the desired boost levels. Lower rotating speed requires less parasitic drag from the engine and adds less heat to the charge air. STaSIS has incorporated a stand-alone cooling system, separate from the vehicle’s existing cooling system, to further cool the supercharger and stabilize running temperatures. Click here or on the the graph for a full size dyno plot.

Complementing the supercharged intake, STaSIS developed a lightweight, free-flowing, T304 stainless steel exhaust system that replaces the factory exhaust. The exhaust’s larger tailpipes, less restrictive dual mufflers and “X” style crossover design weighs 30 lbs less than the factory unit and sounds like a car enthusiast’s dream. Deeper and stronger exhaust notes emanate across all throttle positions without being intrusive or “droning” in the cabin.

To wring out the most power and torque across the entire RPM range, STaSIS engineers have tuned the engine management software to utilize the benefits gained from both intake and exhaust modifications. Larger amounts of power and torque are available from 2000 RPM all the way up to 7500 RPM, providing one of the most exhilarating driving experiences available from any sports car.

Wheels and Tires

STaSIS Signature Series R8 wheels are a combination of strength and beauty. Forged with 300 tons of pressure from 6061 aluminum alloy, these wheels are extremely lightweight and strong. Measuring 20” x 9.5” in the front and 20” x 12” in the rear, STaSIS forged wheels are 27% lighter than cast wheels of the same size, and improve acceleration, stopping and handling.

The wheels are shod in Michelin Pilot Sport PS2 tires, measuring 255/30/ 20 in front and 325/25/20 in the rear. Originally designed for some of the world’s most exotic sports cars, these tires work in concert with the suspension and drive train to deliver over 1.0 G in skid-pad testing.

Braking

STaSIS brakes use lightweight, 2-piece 390-mm rotors in the front and 355-mm rotors in the rear. Designed specifically for racing, these lightweight rotors have large air gaps, custom iron alloy and directional aerofoils that help to quickly extract the heat generated when stopping. Coupled to an aluminum hat via a floating pin design, these rotors are able to stop corner after corner without overheating or deforming due to heat stress.

Suspension

The Signature Series R8 uses higher rate springs matched to custom anti-roll bars to create racecar performance with a factory ride and, is compatible with drive select. Our success in balancing the conflicting goals of a more aggressive stance, improved handling and factory ride comfort in the STaSIS R8 also translates to every Signature Series car we produce.

STaSIS Warranty

STaSIS products purchased and installed by a certified Audi dealer are covered by a 4-year/50,000-mile warranty integrated seamlessly with the standard factory warranty. The STaSIS warranty is the only factory-level warranty in the industry.

Availability STaSIS Signature Series automobiles are available from more than 50 certified Audi dealerships across North America. Visit www.stasisengineering.com for in-depth technical information and to find your closest certified Audi dealership.